A handheld electronic device cradle (300) with heat-dissipating capability is provided. The cradle is used for charging a build-in battery in a handheld electronic device (380) and connecting the handheld electronic device to a host computer so that the handheld electronic device can exchange information with the host computer. The cradle comprises a casing (310), a fan-mounting seat (350) set up in the casing, an electrical fan (351) secured to the seat and a cable (314) for connecting the cradle with the host computer. An insertion slot (311) is provided in the casing. When the handheld electronic device is inserted into the insertion slot, the cradle charges the battery in the handheld electronic device and connects the handheld electronic device with the host computer. Furthermore, the handheld electronic device can communicate with other devices through a wireless network. Heat produced by the handheld electronic device during its insertion in the cradle can be removed by the fan, which generates an air flow blowing on a hot region of the handheld electronic device to take heat away therefrom.